Medical Billing Blog

EMR's and Cash Flow

Posted by Barry Shatzman on Thu, Feb, 16, 2012 @ 12:02 PM

emr software resized 600At my last EMR conference, there were well over 600 EMR’s on the market.  Some were certified but even more were not.  From the latest research according to Mark Anderson from the AC Group, less than 12% of the physicians are using their EMR programs as they were promised or intended.  A recent survey indicated that 38% of physicians where unhappy with their EMR’s, and many were seeking to get out of their contracts.  Since 2008, more than 5,000 practices have decided to replace or drop their EMR vendors. Many have paid upwards of $40,000 per provider for their EMR products only to find out that the product was oversold, did not meet the practice needs, or found that the vendor went out of business shortly after the implementation.

What most EMR salesmen won’t tell prospective clients is the amount of time it takes to implement the EMR properly.  The lost revenue from seeing far fewer patients can be staggering.  It can easily make the difference between making money or losing money for months.

When considering an EMR, take into account the time required for implementing the EMR versus revenue generated from seeing your normal patient load.  EMR’s are highly advanced programs that can’t be learned in the evenings, or weekends; it’s a matter of jumping in with both feet and figuring it out while still practicing medicine.  It can be a very hectic and frustrating 6 months or so.  For every practice among our clientele that implemented an EMR, reimbursements declined during the implementation period--and some have never regained prior revenue levels.

EMR’s are not for everyone, especially if you’re considering retirement, joining another practice, or even selling your practice.  The one lesson I’ve learned from watching my clients’ forays into the EMR market is that you must take a lot of time choosing an EMR.  This is not a decision to be rushed. 

Even though some EMR’s offer a billing module, no EMR is known for its billing capabilities. So don’t be fooled into thinking an EMR can perform all functions effectively or efficiently.  Take a few minutes to think about this:  If you are having problems using your EMR, your EMR is going to have problems with billing.  What you should avoid at all cost is seeing fewer patients during the learning curve, when you’re likely to have problems billing claims caused by EMR issues.  You’ll likely need a very strong cash-line, because practices tend to need to borrow a lot of money just to keep afloat.  We have seen this time and time again. 

Ultimately, the goal is to implement your new EMR program without compromising cash flow.  A good billing service can help any practice through this process.